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(J. 6.)
Maming
Por
is harch 19144
CHINA'S
FINANCIAL
POSITION.
KRUPP LOAN TO BOUTHERN PROVINCES,
(FROM OUR OWN CORRESPONDENT.)
PEKING, March 12. It is understood that the Hong Kong agente of the firm of Krupp have concluded a loan of £2,500,000 with the southern provinces of Kwangtang and Kwangui, secured on the land tax and presumably accompanied by an under- taking on the part of the provinces in question to purchase arms. The finances of those pro- vinces are in a most desperate condition owing to the depreciation of paper money, but the con- clusion of a loan with the German armament manufacturers must have deplorable results.
China's financial condition is daily becoming more critical The negotiations of the Five Power Group are not making any progress pend- ing the result of tho financial conference which assembles in Berlin on Monday. It is no secret that the French aro utilising the loan question and China's request for a revision of her tariff to coerce the Peking Government into admit- ting the French indemnity claims for lossen during the Revolution. There is, indeed, every prospect of a repetition of the Franco-Russian obstruction witnessed here last spring, and of its leading to disastrous results unless Anglo- German banks decide to take independent action.
BRITISH INTERESTS IN CHINA, STATEMENT BY CHINESE FINANCIAL AGENT.
Dr. Chin Chen-tao, the new Chinese Financial Agent in London, has granted an interview to a representative of Reuter's Agency, Discussing his mission, he said:
I have no speclic loan operation in view. My immediate work is to keep in touch with the market conditions and to inform my Government. As to the present requirementa of China, the sum of £25,000,000 already advanced by the Five Powers has been ex- pended, to a large extent, in paying of arreare from the Foreign Debt and in intercal expenditure dur- ing two years of revolution. I strongly hold that the Five-Power Group ought to co-operate with China, sad by giving us their support strengthen us in our sfforts for reorganization. Such result would directly benefit the customers of the Five-Power Banks. China is quite willing, and indeed anxious, to con- olade another loan with this group, bas the barman imposed must be reasonable, for there is ample security. The Salt Gaballs before the revolution Fielded 70,808,000 dollars annually. The estimaba of Sir Louis Dane, Inspector-General of the Gabelle, places it for this year at 24,000,000 dollars, the lowest ever reached, This is due to the destruction of the collecting machinery during the revolution.
Yat even at this low and abnormal estimate there is still amplo margin to secure another £25,000,000 loan after pre- viding for all existing habilities.
China is perfectly solvent under normal conditions, but has incurred heavy and unusual liabilities. At such a time she ought to be given all possible aid. To restrict her in a time of necessity from freely bor rowing may be good in theory, but pressure will compel her to turn to those willing to help her, and the results will probably operate against the best British interests.
The interests of Great Britain and China are identical, for Great Britain possesses the lion's share of our foreign trade. There in some £40,000,000 sterling of British capital in China to-day, three times as much as that of the French, so it is obvious that with a prosperous Ching British trade will dourish. A recent British report spoke of We decline of British trade and prestige in China. Complaint is made of the lack of support of British loans for industrial purposes, and also of diabonourable methods employed by competitors to exclude British mmufacturers. Such incidents are regrettable, but I believe they are maggerated. In any case, China is not alone to blame, because such things are the remuls of economio laws, which are greater than the! law of mah.
C.O
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REC2 IRFGE 13 MAR 14
Page 150Page 151
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